Leading American automaker Tesla is reportedly “serious” about establishing a production and innovation base in India, according to the deputy minister for technology’s statement in a Reuters interview on Friday.
As ev-a2z recently reported, Tesla met with Indian government officials last week to discuss a wide range of topics, such as EV and power battery production incentives.
Tesla’s progress in the Indian market
Tesla apparently proposed erecting a Gigafactory in India to produce its electric car offerings. Apart from that, the automaker is also reported to be looking at EV battery production, per the report.
That said, it would certainly need the government’s support. In the first public statement by a government official, the Union Minister of State for Electronics and Information Technology clarified and confirmed the speculations.
“They are very seriously looking at India as a production and innovation base.”
Rajeev Chandrasekhar, Union Minister of State for Electronics and Information Technology
Minister Chandrasekhar further expressed India’s disposition about Tesla’s’ proposal, saying India will support the automaker’s ambitions.
“We have signalled to them that the government of India is working together (and) will certainly make whatever ambitions they have or investment objective they have in India a success.”
Rajeev Chandrasekhar, Union Minister of State for Electronics and Information Technology
The Minister was also asked if the government’s meeting with Tesla reached beyond car production.
“You don’t talk about cars alone… You talk about cars, you talk about energy, you talk about manufacturing technology. So all of that figures in the conversation. What they will want to do in India, it’s too far for me (to tell) and it’s not for me to say.”
Rajeev Chandrasekhar, Union Minister of State for Electronics and Information Technology
Unfortunately, there is still no official statement from the electric vehicle giant.
See Also:
- Tesla puts India entry plans on hold
- India doesn’t want Tesla to Import Cars from China
- Tesla CEO Elon Musk met with the French President as it seeks global expansion
- CEO Elon Musk follows Indian PM Modi, automotive space reacts
- Tesla CEO Elon Musk names South Korea as a top candidate for EV investment
Nonetheless, this significant meeting marks a significant leap in Tesla’s initial intention from years ago. The electric automaker initially expressed interest in importing its EVs into the country, aiming to test the demand first before producing there. However, it did not materialize as India’s import taxes on cars were extremely high, which the government refused to lower as per Tesla’s request at that time.
Beyond Tesla’s home country (US), it also currently operates its largest Gigafactory in Shanghai. Suppose the negotiation with the Indian government does not succeed. In that case, Tesla seems to have many options, as CEO Elon Musk recently met with the government of Indonesia, South Korea, and France for a “potential” investment.
